Juniper bests Cisco and Check Point in network security market growth

Network security vendor revenues increased 7 percent over Q3 2011, says Infonetics
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With increasing attacks on enterprise networks, the market for network security products has grown recently. In the most recent quarter, network security vendor revenues increased 7 percent compared with Q3 2011, according to the latest stats from Infonetics Research.

Image source: Infonetics

A primary beneficiary of that growth was Juniper Networks (NYSE: JNPR), which saw a healthy 11.1 percent growth in revenue quarter-over-quarter. This revenue growth was much stronger than market leaders Cisco (Nasdaq: CSCO) and Check Point, which saw 1.5 percent and 3.2 percent quarter-over-quarter revenue growth, respectively.

Jeff Wilson, principal analyst for security at Infonetics Research, predicted strong network security revenue growth in the fourth quarter, spurred on by "season budget flush."

Infonetics noted that the integrated security appliance segment has gained market share every quarter since the fourth quarter of last year, a trend the research firm expects to continue through the third quarter of next year.

One of the companies that plays in that market, Palo Alto Networks, recently carried out a successful IPO and posted strong financial performance in Q3 2012. The firm reported a 50 percent year-over-year increase in revenue, reaching $85.9 million in the firm's 2013 first fiscal quarter.

The company said it had recently signed a strategic partnership with Citrix (Nasdaq: CTXS) and expanded its technology partner program by adding RSA, SafeNet, Swivel, Bradford Networks, RedSeal, Skybox Security, Lancope, Interface Masters and Garland Technology to its portfolio.

On the content security side, market revenues fell 0.4 percent quarter-over-quarter in Q3 2012, the third consecutive quarterly drop. Software now makes up 37 percent of all content security gateway revenue, according to Infonetics.

"In the content security segment, companies with broad security product portfolios can, if they are nimble, shift revenue by continuing to integrate web and mail security functions into firewall and IPS [intrusion prevention system] platforms while maintaining standalone solutions. Focused content security companies will be forced to broaden their product portfolios, get acquired, or develop strong partnerships to grow revenue," Wilson concluded.

For more:
- see the Infonetics network security and content security data
- check out the Palo Alto Networks financials

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